PACIFIC WATCH

China

Drain on Hard Currency Seen in Joint-Venture Boom: China, suffering from a hangover from its foreign investment binge last year, has decided to clamp down on a perceived drain on hard currency caused by the proliferation of joint ventures, according to the Financial News. Last year, local governments raced each other to attract foreign investment after Senior Leader Deng Xiaoping called for a bolder opening. The newspaper said that too many of the ventures were unable to earn enough foreign exchange to cover their hard-currency costs. Much of the resulting boom consisted of shady contracts and property speculation, the Chinese press has complained.